Mahindra & Mahindra: M&M has planned a new tractor facility in Brazil as part of its global push. | Tech US News

As part of its strategic global expansion, world’s largest tractor manufacturer Mahindra & Mahindra plans to set up an assembly plant in Brazil – the sixth largest tractor market on the planet.

With manufacturing or assembly bases in the US, Turkey and India, three of the five largest tractor markets, the Arjun and Novo tractor makers are doubling their volume in Brazil over the next few years, and hence with local manufacturing. Expanding its footprint. Hemant Sikka, President, Farm Equipment Business at Bess, Mahindra & Mahindra said.

About 54,000 units are sold annually in Brazil, with nearly two-thirds of the market up to 110 horsepower, the mainstay for Mahindra & Mahindra. In a very short span of time, Mahindra has already captured around 5.2% of the market.

“We are doubling down on Brazil, I am very excited about our prospects in the market. In the current global scenario, Brazil has become a major source of food grain exports and is like the bread basket of the world. The country There is vast potential for agricultural exports from. We have doubled our market share and we hope to increase it further with the new assembly plant,” Sikka added.

The tractor is the flagship of the Mahindra Group in global markets. Apart from Brazil, Mahindra recently took over sales and marketing of tractors in South Africa from its distributor to focus more. It is currently planning to expand into South America and Africa.

With 2 platforms of the new generation of Mitsubishi agricultural machinery and Erkunt – Turkey’s Armatraq brand of tractors, Mahindra is looking to penetrate deeper into Western Europe and Southeast Asia in the coming years.

Indeed, international business already accounts for a third of the company’s total turnover. Its subsidiaries in Japan and North America today account for a combined revenue of one billion dollars.

Sikka said he expects the international business to continue to perform well due to new generation tractors, farm equipment and global footprint.

Mahindra & Mahindra’s global tractor sales stood at around 38,000 units at the end of FY-22. Mahindra North America is its largest hub outside India, where the company sells around 20,000 tractors annually.

The farm equipment business president said direct exports from India will also double in the next three years.

But apart from building multiple nodes globally, it is also expanding capacity locally in Zaheerabad and Nagpur. Mahindra wants to make Nagpur a major export-oriented unit.

“We want to double our export volumes to 40,000 in the next three years. Apart from international expansion, additional capacity is being added in Mohali, Zaheerabad and Nagpur,” Sikka added.

With this, Mahindra’s total capacity in the country will be 4 lakh units.

Over the past seven quarters, all its international subsidiaries have turned profitable and delivered profits ahead of plans.

“For the last seven consecutive quarters we have not only been profitable, we have been well ahead of estimates,” he added.

In a global market of 2.3 million, Mahindra sells around 3.7-3.8 lakh units (over 90% from India) accounting for 16% of the global market share. The company is the largest by volume led by the small to mid-range horsepower segments of 25-150 hp and does not operate in high horsepower tractors – a segment in which John Deere, CASE New Holland, and Kubota dominates. others